The Grayson Report
where cosmetic products are not currently
available, such as a specialty store like H&M,
they will be soon. Cosmetics are ubiquitous!
And every retailer wants them, their own
and/or other brands. All to take business
from the establishment, and all unaudited!
Now, add the recession that caused a significant consumer downshift in channel selection. Many department store customers
traded down to drug stores; the drug store
customer traded down to Walmart, then to
dollar stores. Now she doesn’t even have to
go anywhere—just click or pick up the cell!
So what’s a marketer to do? Easy decision. Either, A, “We’re prestige–department
stores”or B, we’re mass–everywhere. But the
department stores are not a growing channel and it’s almost impossible for small to
medium marketers to make money there.
So what future do Lauder, Lancôme and
Chanel have? BRIC (Brazil, Russia, India,
China), Dubai? Most likely, as it has been
everyone’s go-to strategy for the last couple
Consumers Will Flock to Mass
Mass brands will seek to improve their
“prestige” image so they can move up in
psychic income for the consumer who is
trading down and could use a little ego-support; i.e., Maybelline was the cosmetic
sponsor for Designer Week in New York,
and Cover Girl’s major new fashion-link
advertising is outstanding.
The net will be more mass brand acceptability by the prestige customer, and
more pressure on the department stores,
which will, in turn, pass along to their suppliers in quest for more promotional dollars.
It’s the never-ending circle of discontent. Natural skin care profits from
of years, even before the current malaise.
So what will happen? Color brands such
as MAC Cosmetics need space. They’ll stay
but also expand their own stores. Skin care
and fragrances will find happiness on the internet. Some will continue to“play around”
with QVC and HSN.
Is it any wonder that distribution policy
is now a major consideration for all marketers? Read The Grayson Report on
Happi.com to see just how dicey the distribution scene has become. Or, for a copy of
our distribution chart, send a request to
email@example.com. Note all
the yellow? That’s all newer points of distribution, places where consumers can buy
beauty, and most of those are unaudited
channels. So when the audited services say
that business is flat or down…don’t you
think that if the total beauty world was audited (that’s an idea!), it would be up,
Another hidden message is that consumers are being satisfied with products that
are not all coming from the traditional mar-keters.“Availability creates its own demand,”
with a great boost from impulse. Finally, if
distribution translates to being where the
customers are, it behooves all to find appropriate new ways to reach them. •
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